Chinese Insurer Told to Stop Buying Stocks By Regulator

A new chill has hit the A-share market: an insurer was told to halt equity investments due to its weak repayment ability.

Besides signs of tightening liquidity, analysts said stocks tumbled amid concern recent gains weren’t justified by fundamentals and policymakers may introduce policies to restrain housing-price gains in some of the nation’s largest cities. Losses accelerated in the afternoon after regulators banned Zhongrong Life Insurance Co. from adding to its equity investments.

iFeng has the story: 中融人寿炒股被叫停 保监会主席：险资整体风险可控

In the opinion of investors, insurance companies are rich and powerful gold master, who said the win put who scored. But February 25 CIRC supervision of a paper letter solvency problems due to make financial life ordered to stop increasing equity investments, an increase of one point letting market worries - the insurance company in the end is the true gold master, or a large turnip?

Faced with the market worried, CIRC Chairman Xiang Junbo has spoken, "We did repeatedly estimated the overall risk insurance funds overall control, and for some small insurance companies, we continue to conduct stress tests, basically no problem."

One of the factors driving the A-share bull market was buying by insurance companies. With talk of money flowing back into property as investors abandon stocks, news of an insurer being banned from buying stocks was most unwelcome.

according to the CIRC's stress test results, there are 18 qualified companies undergoing stress tests, most have passed, as for potential risks for individual companies, will take targeted regulatory measures.